OCTOBER/NOVEMBER 2013 SA MINES & ENERGY JOURNAL
8
INDUSTRY NEWS
Coalition to boost agging exploration
Chevron updates SA's
resources industry
Russian Honeymoon
A pre-election promise by the
Coalition Government to introduce
an Exploration Development
Incentive has been welcomed by
the mining and resources industry.
The now Energy and Resources
Minister, Ian Macfarlane,
announced the scheme last month.
"The Coalition will introduce
an Exploration Development
Incentive that will allow investors
to deduct the expense of mining
exploration against their taxable
income, starting on 1 July
2014,
" Mr Macfarlane said.
"Under the Coalition's scheme,
the Australian Taxation Office
will determine a proportion of
expenses that can be claimed
as tax credits by investors.
"Our scheme will target
small exploration companies by
limiting eligibility to companies
with no taxable income and
will be capped at $100 million
over the for ward estimates.
"
SACOME Chief Executive, Jason
Kuchel, said the commitment
by the new government to the
industry followed many years of
extensive lobbying. He said the
Chamber was looking for ward to
working with the government to
implement its promised Exploration
Development Incentive, a scheme
that will address the immense
investment challenges to minerals
exploration and see a commitment
to much-needed capital.
"The exploration sector is the
engine room of our resources
sector and an exploration tax credit
scheme is vital in encouraging
investment as it allows investors
an immediate return on their
investment. It also addresses the
current lack of access to urgently
needed capital to fund a waiting
list of projects,
" Mr Kuchel said.
"The Coalition recognises the
importance of stimulating the
engine room of the mining sector,
especially in South Australia where
we are reliant on new discoveries
to support the economy and we
look for ward to working with them
to implement a working formula
beneficial to all South Australians.
"
SACOME will also work
particularly closely with the
Federal and current State
Government on the need for key
infrastructure development.
US giant Chevron addressed the
South Australian resources sector
for the first time at SACOME's
lunch on 20 September.
Kevin Stevenson, Asset Manager
Central Australia, spoke about
Chevron's farm in agreement
with Beach Energy, which could
see their interests in two permits
covering 810,000 acres within the
Cooper Basin increase further next
year, depending on the outcome
of current exploration activities.
The majority of the presentation
focused on the company's
Australian projects in the context
of its global activities, which cover
10 million acres in 18 plays across
many counties. Mr Stevenson
said Chevron's offshore Western
Australian Gorgon project is
Australia's biggest single resources
project and revealed that 37
tcf of gas had been discovered
in the surrounding area.
He said the Gorgon project
was on track for LNG export
through 3 LNG trains in 2015 and
would initially be fed by two gas
fields. It will include a domestic
plant as well as the 15.6 Mtpa
LNG facility. Chevron has made
21 offshore discoveries in the
region over the past four years.
Chevron's Wheatstone
project -- the company's biggest
investment ever at $52 billion --
was also discussed in depth.
Building the future
Details of a Future Fund which
will pave the way for South
Australia's long-term prosperity
has been announced by Premier
and Treasurer, Jay Weatherill.
The State Government has
committed to introducing
legislation for a Future Fund
that quarantines money to be
spent on infrastructure, children,
families and the workforce.
"The Future Fund will preser ve
some of the benefits we gain
today from our mineral and
petroleum reser ves for future
generations,
" Mr Weatherill said.
"This special 'bank account'
will deposit the gains of strong
economic times to reinvest in our
state to secure our children's future.
It will only be able to be spent on
infrastructure that has significant
and long-lasting economic benefits
and on programs that build the
capabilities of our children, the
resilience of our families and
the skills of our workforce.
"
Injections into the fund will
be made when the Budget is
in surplus. The first injection of
funds will be in 2015-16 and is
anticipated to be about $20 million.
The way the fund will work
is that a fund balance of $500
million will be required before
payments can be made.
An advisory board -- comprising
representatives of the resources
sector, as well as experts in
finance and investment, economic
development, education and
regional interests -- will provide
recommendations to the
government on payments from the
fund to promote economic growth.
SACOME welcomed the
announcement and is pleased
that the Premier recognises
the future contributions of the
resources sector, but called for the
government to inter vene in the
State's critical infrastructure issues
now to advance projects, boost
the economy and create jobs.
The owner of the Honeymoon
uranium mine in South Australia
is being purchased by its
major Russian shareholder.
The buyout will be completed
by the end of the year as
shareholders of Uranium One
have accepted an offer from
the Russian State Corporation
for Nuclear Energy, Rosatom.
A subsidiary of Rosatom
currently owns around 49
percent of Uranium One, with
the new deal signalling 100
percent ownership rights.
Uranium One is a Canadian-
based company and is one
of the world's largest publicly
traded uranium producers,
with a primary listing on the
Toronto Stock Exchange and
a secondary listing on the
Johannesburg Stock Exchange.
The company has a globally
diversified portfolio of assets
located in Kazakhstan, the United
States, Australia and Tanzania.
The acquisition is in line
with both Russia and China's
position over the past three
years to purchase uranium
projects around the world in
order to secure supply for their
nuclear reactors. Demand
for uranium is set to outstrip
supply by more than 11,000
tonnes this year, creating more
opportunities for investment
in the Australian sector.
SACOME members can now receive
up to a 10 percent discount on
Business Class and Economy Class
travel when flying with Emirates
from Adelaide (conditions apply).
The discount also applies to
immediate family of SACOME
members (when flying together)
and can be booked only via a link
accessed through the Member Only
section of the SACOME website.
The discounted travel is open
to a wide ranging selection of
destinations. Log on to www.
sacome.org.au to access this
special offer and follow the simple
online booking instructions.
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